Begin your strategy to connect with them today.
By Wallace Jones Sponsored by CU Members Mortgage
As a leading mortgage partner within the credit union industry, we are often asked what the future of home lending will look like. Will rates go up? Will compliance struggles prevent growth? Will lending thrive? Thriving depends in part on this key question: How well do you know the future borrower? While rates remain historically low, it’s inevitable that they will go up. Compliance struggles continue to be a part of the lending atmosphere, but they will be managed and eventually become less burdensome. Therefore, lending will continue. Whether or not it thrives will be up to your credit union and how well it adapts to the marketplace. Sounds simple enough, but without the proper research and preparation, your credit union’s home loan program could become stagnant or even shrink. Determining the future borrower starts with knowing about household growth. The growth of households is one of the most important predictors of potential home ownership gains. Knowing exactly who your borrowers are, what they need, and how to reach them will decide your success in lending. These facts about the growth of the marketplace suggest that credit unions need to get to know how to serve Hispanic consumers.
- Since 1970, the Hispanic population has grown 592 percent, according to the National Association of Hispanic Real Estate Professionals.
- The Hispanic demographic represents the largest growing segment in the United States.
- Hispanics will account for 56 percent of the new homeowners from 2010 to 2020.
- Almost two of five Millennials are Hispanic, amounting to approximately 18 million.
It’s easy to see that a majority of household growth will be represented by the Hispanic demographic and therefore the future home buyer and lending expansion will require a connection to this group. Are you ready? If you haven’t included the Hispanic market segment as a significant portion of your home loan marketing, consider a relationship with the National Association of Hispanic Real Estate Professionals. It has local chapters across the country and connects all real estate professionals working to better serve the Hispanic market segment. NAHREP can connect you with resources that can help strategize your efforts and help you reach a level of understanding in how to connect with this population. Another good way to learn more about connecting is attend our Hispanic market webinar.
Wallace Jones is VP/training for CUES Supplier member CU Members Mortgage, Addison, Texas. CUES School of Consumer Lending and CUES Advanced School of Consumer Lending will both be held in July in Seattle. CUES Advanced School of Business Lending: Commercial Real Estate Lending will be held in September in San Antonio.
